According to the clean energy strategy under the China hydropower development eleven five plan and the 2020 national development goals, the average annual increase in hydropower installed capacity is 14250MW and the hydropower development at the present time stage mainly concentrates on western China, especially in the southwest region. This will bring a tremendous number of reservoir immigrants to resettle properly. This paper analyzes the necessity of innovation in rural resettlement mode, and presents a new long-term compensation plus bonus shares and social security mode, considering the scarcity of land resources in the southwest from the perspective of sustainable development in reservoir resettlement. Example calculation of one large hydropower station was made for the annual income of immigrants in its construction period and operation period. A comparative analysis shows that this new method could provide a stable source of immigrants' income, gradually enhance their income level, and hence provide a very good way to stimulate their participation and enthusiasm. Also, the new method would lower the project owner's financing pressure and better promote urbanization and new rural construction.